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Mar 31, 2024
Sunstone Q1 2024 Earnings Report
Sunstone's first quarter results were reported, with a decrease in net income and RevPAR, but the acquisition of the Hyatt Regency San Antonio Riverwalk was completed.
Key Takeaways
Sunstone Hotel Investors reported a decrease in net income and RevPAR for the first quarter of 2024 compared to the same period in 2023. Net income was $13.0 million, down from $21.1 million, and comparable RevPAR decreased by 5.1% to $223.06. The company acquired the Hyatt Regency San Antonio Riverwalk and increased the quarterly cash dividend.
Net income decreased to $13.0 million from $21.1 million year-over-year.
Comparable RevPAR decreased by 5.1% to $223.06.
Adjusted EBITDAre decreased by 9.2% to $54.5 million.
The company acquired the Hyatt Regency San Antonio Riverwalk.
Forward Guidance
For the full year 2024, Sunstone expects net income between $56 million and $77 million and Adjusted EBITDAre between $242 million and $263 million.
Positive Outlook
- Full year total Adjusted EBITDAre displacement of approximately $13 million to $15 million in connection with planned capital investments.
- Full year interest income of approximately $10 million to $11 million.
- Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.
- Full year interest expense of approximately $50 million to $53 million, including approximately $3 million in amortization of deferred financing costs and $2 million of noncash reduction to interest expense from derivatives.
- Full year preferred stock dividends of approximately $15 million to $16 million, which includes the Series G, H and I cumulative redeemable preferred stock.
Challenges Ahead
- The Confidante Miami Beach is expected to reopen as Andaz Miami Beach in the fourth quarter of 2024 and the Company currently anticipates that the resort will generate an EBITDAre loss of approximately $3 million to $5 million, excluding pre-opening and certain capitalized costs, in 2024 as the comprehensive transformation is completed.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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